JSE starts week on soft note
A turnaround in Naspers on Monday failed to lift the overall JSE‚ as the all share started the week on a soft note.
After losing nearly 3% soon after the opening‚ Naspers ended the day 0.68% higher at R3‚206.42‚ after announcing plans to unbundle MultiChoice.
Trade was choppy for most of the day as the market sought direction on a firmer rand and as concern over trade relations between the US and China weighed on global stocks.
In addition to the renewed concern about foreign trade‚ the stronger dollar reinforces pressure on emerging markets‚ FxPro analysts said.
The all share closed 0.5% lower at 56‚298.7 points and the top 40 lost 0.48%.
Food and drug retailers shed 2.32%‚ banks 2.15%‚ general retailers 1.48%‚ financial stocks 1.46%‚ property 1.03% and industrial shares 0.46%.
The gold index rose 2.33%‚ platinums 0.62% and resources 0.37%.
Anglo American climbed 1.31% to R302.43.
Harmony jumped 5.43% to R27.37 and AngloGold Ashanti 4.07% to R123.25.
Absa shed 2.73% to R145.90 and Standard Bank 2.35% to R172.
Shoprite lost 2.45% to R190.20 and Woolworths 2.32% to R50.14.
Clicks lost 4.16% to R181.55. Although the rand has pulled back from the worst levels it reached earlier in the month‚ it has still raised the spectre of higher inflation‚ coming at a time when the economy is contracting.
Consumer inflation‚ due out on Wednesday‚ is expected to have risen to an annual rate of 5.2% in August‚ from 5.1% in July.
It is creeping closer to the upper limit of the Reserve Bank’s 3%-to-6% target range.
Investec economist Annabel Bishop said the bank might raise interest rates by 25 basis points when its monetary policy committee concluded its meeting on Thursday‚ due to the effect of a weaker rand on the inflation outlook.
Domestic bond yields were higher with the R186 bid at 9.255% from 9.175%.
The US 10-year treasury was last seen at 2.9916% after earlier hitting 3.0166%‚ its highest level in five months.
The top 40 Alsi futures index lost 0.4% to 50‚081 points. The number of contracts traded was 85‚954. –